Correlation Between Chongqing Brewery and Hang Xiao
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By analyzing existing cross correlation between Chongqing Brewery Co and Hang Xiao Steel, you can compare the effects of market volatilities on Chongqing Brewery and Hang Xiao and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chongqing Brewery with a short position of Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Hang Xiao.
Diversification Opportunities for Chongqing Brewery and Hang Xiao
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Hang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel and Chongqing Brewery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chongqing Brewery Co are associated (or correlated) with Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Hang Xiao go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Hang Xiao
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to generate 1.05 times more return on investment than Hang Xiao. However, Chongqing Brewery is 1.05 times more volatile than Hang Xiao Steel. It trades about 0.02 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.0 per unit of risk. If you would invest 6,129 in Chongqing Brewery Co on September 12, 2024 and sell it today you would earn a total of 448.00 from holding Chongqing Brewery Co or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Hang Xiao Steel
Performance |
| Timeline |
| Chongqing Brewery |
| Hang Xiao Steel |
Chongqing Brewery and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Hang Xiao
The main advantage of trading using opposite Chongqing Brewery and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Hang Xiao can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Chongqing Brewery vs. Epoxy Base Electronic | Chongqing Brewery vs. Xinya Electronic Co | Chongqing Brewery vs. Dareway Software Co | Chongqing Brewery vs. Shantou Wanshun Package |
| Hang Xiao vs. Nanjing Putian Telecommunications | Hang Xiao vs. Tianjin Realty Development | Hang Xiao vs. Kangyue Technology Co | Hang Xiao vs. Shenzhen Hifuture Electric |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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